Building confidence in executing IT programs

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Figure 1: Digital technologies and business drivers 50% of all IT programs underperform Cloud computing Analytics Internal process efficiency and agility Enhanced customer experience Innovation to drive competitive advantage Enterprise mobility Social media Half of all IT programs underperform With few exceptions, organizations across all industries continue to show poor performance in successfully delivering IT programs, achieving expected outcomes and sustaining benefits. Reports by McKinsey show that approximately half of IT programs with budgets over US$15m miss timelines, go over budget and/or don’t produce expected outcomes. Most alarming is that 17% of IT programs are planned and executed so poorly that they can threaten the very existence of the company. While companies have invested significantly in increasing their knowledge and capabilities in program and project management, this investment is not reflected in program success rates. The lack of improvement is mainly due to improper program adaptation to the increased complexity in business processes and in the emerging technology landscape. There are consistent patterns associated with challenged programs by organizations that fail to recognize, quantify and then properly adapt their program approaches, governance, processes and controls for program complexity. 4 | Building confidence in executing IT programs
A crucial differentiator for corporate competitiveness Effective program and project management capabilities are now one of the most crucial differentiators for competitiveness in the future marketplace. Given the focus on investing in IT, getting strategic IT programs right could be the make-or-break difference between realizing business growth and being a market leader, or being left behind. While today’s mainstream thinking is that strategic IT programs need to deliver sustainable business benefits that enable a competitive advantage, many continue to be focused on the more traditional measures — delivering on time and within cost budget. In daily program operations, teams have not changed their operational behavior of focusing on primarily schedule and cost objectives, and when faced with trade-off decisions that could impact the achievement of benefits, time and cost usually win. Therefore, the benefits of the capital investment are marginalized, often without the knowledge of the key stakeholders. The failure of strategic IT programs can leave companies exposed to significant increases in costs, reputational damage, loss of customers, and the disruption of day-to-day activities. And these risks are increasing. In the future, organizations that fail to manage their strategic IT programs, based on realizing business benefits and contributions to innovation and competitive advantage, will find it increasingly difficult to remain relevant to their workforce, customers and the broader market in which they operate, and they will become laggards in their respective industries. A new way of thinking and managing strategic programs must be inculcated within all levels of the project structures to maximize investment outcomes. 17% of IT programs are planned and executed so poorly that they can threaten the very existence of the company The reasons for IT program failure There are usually many intertwined factors that result in an IT program failing to deliver its intended objectives and benefits. There are typically a number of risks that, when combined, result in programs failing or underperforming. Many of these risks are inherent in the program at the start and go undetected until the later stages of the program, and then symptomatic issues spring up as “surprises.” Management needs to be aware of the organization’s specific IT program-risk universe and implement strategies up front to manage the most likely risks to program success. The most common causes of complex IT program failures are outlined in the following chart. Building confidence in executing IT programs | 5
Page 1 and 2: Insights on governance, risk and co
Page 3 and 4: Introduction IT program success sup
Page 5: Project execution continues to stru
Page 9 and 10: Execution • Inadequate risk asses
Page 11 and 12: Program risk management is importan
Page 13 and 14: Third line Audit committee Internal
Page 15 and 16: Figure 4: Risk state analysis Progr
Page 17 and 18: Are your people aligned toward succ
Page 19 and 20: Empowerment alignment Along with de
Page 21 and 22: Benefiting from independent program
Page 23 and 24: Questions to build program confiden
Page 25 and 26: Conclusion IT PRM risk-based analys
Page 27 and 28: If there’s no reward without risk

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